South Korea budget office reviews use-based rewards for won stablecoins

South Korea’s National Assembly Budget Office said in a report released today that if won-denominated stablecoins are introduced, interest payments for simple holding should be restricted while rewards tied to actual use, including payments and trading, could be considered. The report said interest payments are banned in both the U.S. and Europe, while discussions have recently emerged around allowing use-based rewards as an incentive to expand adoption. It added that regulators need to review caps on reward rates and the scope of rewards, citing competition with the existing financial industry and the risk of excessive stablecoin issuance.